The Modern Slavery Act 2015 – guidance and model documents

Content

1. Background
2. What do slavery, human trafficking and exploitation mean?
3. Which businesses are required to report?
4. What should the statement look like?
5. Publishing the statement – when, who and where?
6. Sanctions for non-compliance
7. What do the new requirements mean for your business?
8. REC resources
9. Other useful resources

Annex A – definitions of slavery, human trafficking and exploitation

Annex B – Template modern slavery policy and statement

1. Background

 The Modern Slavery Act 2015 (the Act) significantly enhanced the criminal penalties for traffickers and illegal gangmasters, alongside increasing support and protection for victims of modern slavery and human trafficking. The Act applies across all industry sectors and so is not recruitment specific.

Section 54 of the Act also introduced a new statutory obligation on large businesses to publish an annual statement on the steps they are taking to ensure that modern slavery and human trafficking are not taking place within their business operations and their supply chain. The Modern Slavery Act 2015 (Transparency in Supply Chains) Regulations 2015 which came into effect on 29 October 2015 build on Section 54 and provide more detail on the requirements.  All references to the Regulations in this document are to those regulations. 

Some REC members operating in certain sectors of the economy may be more familiar with the risks of modern slavery and human trafficking than others, but it is hoped that the Act and the Regulations will encourage business across the whole of the economy to increase their efforts to eliminate modern slavery and human trafficking.

2. What do slavery, human trafficking and exploitation mean?

We set out the definitions of slavery, human trafficking and exploitation in full in Annex A.  In brief they are:

• Slavery/ servitude – behaviour depriving an individual of their freedom and property[1].
• Human trafficking – arranging or facilitating the travel of another person with a view to them being exploited, even if they consent to the travel [2].
• Exploitation- forced or compulsory labour. This can include direct threats of violence or more subtle forms of compulsion[3].

3. Which businesses are required to report?

 The reporting requirement applies to commercial organisations which:

• Are incorporated (either a public or private company) or a partnership;
• Supply goods and/or services in the UK (even if incorporated outside the UK); and
• Have an annual turnover of at least £36 million (see below for comments relating to group companies and overseas revenue).

Turnover – total turnover of a commercial organisation is (a) the turnover of that organisation and (b) the turnover of any of its subsidiary undertakings (Regulation 3(1)). Turnover means the amount derived from the provision of goods and services falling within the ordinary activities of the commercial organisation or subsidiary undertaking after deduction of (a) trade discounts, (b) VAT and (c) any other taxes based on these amounts (Regulation 3(2)).

Group companies – every organisation within a group of companies will have to publish a statement if it meets the above requirements. Neither the Act nor the Regulations specify how a group of companies can manage this obligation. However, the Home Office guidance states that if for example a parent company and one or more subsidiaries are each required to publish a statement, then the parent company could provide one statement for use by all provided it covers the steps each organisation has taken during the financial year. This includes where the subsidiary is a non-UK company. [4]

Franchises – again, this is not expressly covered in the Act or the Regulations but is covered in the Home Office guidance. Only the franchiser’s turnover is relevant to assess whether the franchiser has a duty to publish or not.  However, any franchisee which reaches the £36 million in its own right will also have a duty to publish.

Businesses that don’t meet the above requirements – while the majority of REC members may not meet the turnover threshold and therefore will not be required to report in their own right, they may be asked by businesses further up the supply chain to help them prepare their statement by providing evidence or implementing new policies and practices. So members supplying via vendors, whether master or neutral, can expect to be questioned about the steps they take to tackle slavery and human trafficking within their own organisation and any other entities they engage with. Alternatively, where there are no vendors they could be asked directly by their client if it has a duty to publish.

4. What information should the statement contain?

 There is no prescribed format for the content or structure of the statement.  The guidance states that different types of business can develop their policies and practices – and consequently statements – to reflect the level of risk in their sectors. That said, Section 54 of the Act states that the statement may include information about: 

• The organisation’s structure, its business and its supply chains;
• Its policies in relation to slavery and human trafficking;
• The organisation’s due diligence processes in relation to slavery and human trafficking in its operations and supply chains (i.e. audits, compliance checks, procurement policies);
• Steps taken to assess and manage risk of modern slavery and human trafficking in its operations and supply chains, and how the business measures its effectiveness in this regard;
• The training about slavery and human trafficking which is available to staff.

It is quite common for businesses to have already adopted, for example, one or more of:

• A corporate social responsibility policy
• An ethical procurement policy
• An anti-bribery / corruption policy
• A code of conduct for suppliers (possibly including procedures for handling alleged breaches)
• A whistle-blowing policy

It may be appropriate to reference one or more of these policies in your modern slavery statement.

The Home Office guidance also suggests noting whether any of the organisation’s work is seasonal, the countries it sources goods and services from including high risk countries where modern forms of slavery are prevalent and the relationships it has with suppliers, trade unions and other bodies representing workers. It also emphasises that tackling modern slavery is not just about policies but about organisational behaviour including training, resourcing, collaboration and leadership by senior management [5].

Due diligence – neither the Act nor the Regulations set out what due diligence the reporting organisation might do on their supply chains.  However, Annex E of the Home Office guidance sets out some pointers [6].  It states that due diligence procedures should be:

• Proportionate to the identified modern slavery risk (which is affected by the countries and sectors the supply chain operates in, finance (including money laundering) and business partners);
• The severity of the risk;
• The level of influence a business may have; and
• Informed by broader risk assessments that the organisation has already conducted.

Language – the Home Office guidance suggests keeping the information succinct and writing it in plain English to ensure it is accessible to all. The statement should be written in English but can be provided in other languages relevant to the business and supply chains (though note there is no obligation in the Act or the Regulations to provide it in other languages). Where an organisation already has to comply with auditing or reporting obligations elsewhere, e.g. the Ethical training Initiative, they can build on those rather than start from scratch. 

The REC has created a template model slavery policy and statement – see Annex B. Modern Slavery Policy

 Meridale Recruiting Solutions Ltd is committed to eliminating modern slavery, human trafficking, forced labour, and similar human rights abuses.

3. Meridale Recruiting Solutions Ltd is committed to ensuring that its staff and any workers it supplies (directly or indirectly) are not subject to behaviour or threats that may amount to modern slavery, human trafficking, forced labour, and similar human rights abuses.
4. Meridale Recruiting Solutions Ltd provides appropriate training and awareness information for all of its staff.
   In particular:

• Our leadership team receive detailed training in identifying and resolving concerns around modern slavery and human trafficking.
• Our staff involved in recruitment undertake training courses that include guidance around modern slavery and human trafficking, as well as other wider human rights issues.
• All of our staff receive awareness-raising information around issues involving modern slavery and human trafficking so that they can bring any concerns they have to the attention of management.

6. Any staff, workers or other parties are strongly encouraged to report any concerns or suspicions that they might have to the Operations Director.
7. Reports surrounding these issues are taken extremely seriously by directors and senior leadership teams who are committed to ensuring that all investigations shall be prompt and effective. If our investigations reveal any issues, we are committed to taking appropriate action, including but not limited to:
   • Removing that organisation from our preferred supplier list and
   • Passing details to appropriate law enforcement bodies.
8. We regularly monitor our risks in this area through the use of relevant key performance indicators, including:

• The percentage of suppliers who sign up to an appropriate code / provide their own modern slavery statements,
• The effectiveness of enforcement against suppliers who breach policies,
• The amount of time spent on audits, re-audits, spot checks, and related due diligence, and
• The level of modern slavery training and awareness amongst our staff.

8. As part of our efforts in this area, we publish a modern slavery statement on an annual basis.
9. We would also recommend reading this in conjunction with our other policies, including our:
   • Corporate social responsibility policy,
   • Ethical procurement policy,
   • Anti-bribery / corruption policy, and
   • Whistle-blowing policy.

This policy was adopted on 01/01/2024 after being agreed by the directors.  It is reviewed annually

Modern Slavery Statement

This statement is made as part of Meridale Recruiting Solutions Ltd.’s commitment to eliminating the exploitation of people under the Modern Slavery Act 2015 (the Act).  It summarises how Meridale Recruiting Solutions Ltd operates, the policies and processes in place to minimise the possibility of any problems, any risks we have identified and how we monitor them, and how we train our staff. 

This statement is published in accordance with section 54 of the Act and relates to the financial year January 2024 Year] to [January 2025].  It was approved by the Director in January 2024.

Leonard Kaurrai

Operations Director

• Our Business

Meridale Recruiting Solutions Ltd is a limited operating in the recruitment sector.  We [provide introduction services and supply temporary workers in the healthcare sectors.

[Choose one of the following] [see Note 4]

Meridale Recruiting Solutions Ltd is an independent business. 

• Who we work with

All of the hirers that we work with, and all of the work-seekers we provide, are known to and identified by our staff.  All of the temporary workers we supply are identified by our staff. Some of these work-seekers operate through their own limited companies. We do not supply work-seekers to hiring companies through any intermediaries.

• Other relationships

As part of our business, we also work with the following organisations:

• the Recruitment and Employment Confederation (rec.uk.com) and the Institute of Recruitment Professionals (www.rec-irp.uk.com)
• Our Policies

Meridale Recruiting Solutions Ltd has a modern slavery policy available on our website www.meridalerecruitingsolutions.co.uk

In addition, Meridale Recruiting Solutions Ltd has the following policies which incorporate ethical standards for our staff and our suppliers.

• Health and Safety Policy
• Data Protection Policy
• Quality assurance Policy
• Criminal record Check Policy and Procedures etc.
  • Policy development and review

Meridale Recruiting Solutions Ltd policies are established by directors based on advice from HR professionals, industry best practices and legal advice, and in consultation with REC and QCS.  We review our policies regularly, or as needed to adapt to changes. 

• Our Processes for Managing Risk

In order to assess the risk of modern slavery, we use the following processes with our suppliers:

• When engaging with suppliers, we ask for evidence of their processes and policies, including commitments around modern slavery, human trafficking, forced labour, human rights, and whistle-blowing.
• We review the potential for risk at regular intervals, including the possibility of re-auditing a supplier or conducting spot checks.

After due consideration, we have not identified any significant risks of modern slavery, forced labour, or human trafficking in our supply chain.  However, we continue to be alert to the potential for problems. 

Additionally, we have taken the following steps to minimise the possibility of any problems:

• We reserve the right to conduct spot-checks of the businesses who supply us, in order to investigate any complaints.
• We collaborate with our suppliers in order to improve standards and transparency across our supply chain.
• Only senior members of staff who have undergone appropriate training for assessing modern slavery risks in the supply chain are authorised to sign contracts and establish commercial relationships in any area where we have identified the potential for risk.
• We ensure that all of our suppliers are members of appropriate industry bodies and working groups.

Our staff are encouraged to bring any concerns they have to the attention of management.

• Our Performance

As part of monitoring the performance of Meridale Recruiting Solutions Ltd we track the following general key performance indicators:

Based on the potential risks we have identified, we have also established the following key performance indicators, which are regularly assessed by directors and our senior leadership team.

[Describe any indicators you have established, such as any of the following:]

• the percentage of suppliers who sign up to an appropriate code / provide their own modern slavery statements
• the percentage of workers and/or candidates supplied from audited businesses /our preferred supplier list
• the effectiveness of enforcement against suppliers who breach policies
• the amount of time spent on audits, re-audits, spot checks, and related due diligence
• the level of modern slavery training and awareness amongst our staff

We [benchmark our indicators against industry best practices / discuss our indicators with suppliers / carefully consider our indicators], in order to ensure that we do not put undue pressure on our suppliers that might increase the risk potential.

• Our Training

All of our staff receive training and support that is appropriate to their role.  In particular:

• Our [leadership team receive detailed training in identifying and resolving concerns around modern slavery and human trafficking.
• Our recruiters, HR personnel, and staff undertake training courses that include guidance around modern slavery and human trafficking, as well as other wider human rights issues.
• All of our staff receive awareness-raising information around issues involving modern slavery and human trafficking so that they can bring any concerns they have to the attention of management.

As part of this, our staff are encouraged to discuss any concerns that they have. 

Training is refreshed annually.

[1] Section 1 of the Act

[2] Section 2 of the Act

[3] Section 3 of the Act

[4] Pages 7 and 8 of the Home Office guidance

[5] See Annex E of the Home Office guidance

[6] Pages 27 to 37